KAMPALA – dfcu Bank has affirmed to their customers that the High Court Land Division order to vacate 48 leasehold properties belonging to the defunct Crane Bank will not affect their operations.
The court’s Assistant Registrar issued a ruling on 2nd February 2024 mandating dfcu Bank to hand over the 48 properties that had been transferred to the entity by Bank of Uganda (acting as then Receiver of Crane Bank Limited [CBL]) as part of the Purchase of Assets and Assumption of Liabilities Agreement (P&A).
Also the October 24, 2023 ruling by Justice Tadeo Asiimwe ordered dfcu Bank to pay former Crane Bank Shs2.4 billion in damages with 8% interest per year for trespassing on property of the defunct bank.
“A declaration that the transfer of the leasehold interests in the suit properties from Crane Bank Limited into the names of the 1st Defendant was tainted with illegality and fraud and is therefore invalid,” he ruled.
“A declaration that there are no valid leases in respect of the suit properties. The said leases are therefore declared to be invalid and absolutely determined on account of breach and illegality,” he added.
Justice Asiimwe also ordered the Commissioner Land Registration to immediately cancel 48 suit leases, lease variations and extensions registered as encumbrances on the mailo and freehold titles belonging to Crane Bank Limited.
“The 2nd Defendant is hereby ordered to cancel the entry of the suit leases, lease variations and lease extensions registered as encumbrances on the Mailo and freehold titles of the Plaintiff,” he ruled.
Justice Asiimwe also issued a permanent injunction restraining the dfcu Bank Limited, its agents and servants from trespassing on the Crane Bank Limited properties.
“An order of a permanent injunction is hereby issued restraining the 1st Defendant, its agents and servants from continued trespass on the suit properties,” the judge added.
Commenting on the matter, dfcu said “Complying with the Court ruling has no impact on dfcu’s operations.”
“dfcu remains strong and well-capitalized, meeting all the needs of its customers and fulfilling its purpose of transforming lives and businesses in Uganda,” the said in a statement.
